Retrieval Rate
Definition
The retrieval rate is another term for the holdback percentage in a merchant cash advance. It represents the percentage of daily revenue that the MCA provider retrieves (collects) each business day until the advance is fully repaid. The retrieval rate directly affects how quickly the advance is paid off and how much of daily revenue remains available for business operations. A lower retrieval rate preserves more daily cash flow but extends the repayment period, while a higher rate accelerates repayment at the cost of tighter daily cash flow.
Example
An MCA with a 12% retrieval rate on a business averaging $5,000/day in deposits means approximately $600/day is retrieved by the funder, leaving $4,400 for the business to operate with each day.
Related Terms
Factor Rate
A factor rate is a multiplier used to determine the total cost of a merchant cash advance or short-t...
Merchant Cash Advance (MCA)
A merchant cash advance is a financing arrangement where a business receives a lump sum of capital i...
Holdback
In merchant cash advance agreements, the holdback (also called retrieval rate or withholding percent...
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